MRPC NEWS

Jan. 7, 2005


For immediate release
For more information, contact:
Bonnie J. Prigge or Lesley Bennish (573) 265-2993

STATE MODIFIES CITY'S AFFORDABLE HOUSING GRANT
TO INCLUDE EXISTING HOMES PURCHASED BY INCOME ELIGIBLE FAMILIES

Grant dollars available to help eligible homebuyers purchase first home


ROLLA-The Missouri Department of Economic Development has expanded the city of Rolla's affordable housing grant to include existing single-family homes instead of limiting it to new construction homes. The city of Rolla is hopeful that this will open the door for more local families to participate in buying a home through its affordable housing program, said John Petersen, Rolla's community economic developer.

The city of Rolla still has grant dollars available to help income eligible homebuyers purchase single-family homes in Rolla by providing assistance with down payments and closing costs. The downpayment assistance program is made possible through a grant of $122,000 from the Missouri Department of Economic Development Community Development Block Grant Program.

At first, the program was limited to new construction homes, but recently DED announced that existing, single-family home purchases were eligible for the program.

The program will cover up to 50 percent of the down payment and 100 percent of the closing costs for eligible buyers, not to exceed $7,200 total, said Lesley Bennish, community development specialist with the Meramec Regional Planning Commission, who prepared the grant request and is administering the program for the city of Rolla.

The assistance will be offered as a four-year forgivable loan, as long as the applicant resides in the home. The loan would be forgiven on a prorated basis and will be detailed in a regulatory agreement filed with the county recorder.

The buyers must be low-to-moderate income and the cost of the single-family home should be affordable. Any home cvosting more than $105,000 must be approved by the city for inclusion in the grant program. Mobile homes are not eligible for the program, however, the city may approve modular housing depending on an approved site plan, building elevation and neighborhood.

The homes must meet all city codes and ordinances, and the homebuyers must remain current on property taxes and other city assessments.

To apply for the assistance, prospective homebuyers must complete an application that will document their income and must attend a homeownership budgeting workshop, offered by MRPC. Eligible buyers must meet the income limits specified below:
* 1-person family-At or below $26,400
* 2-person family-At or below $30,150
* 3-person family-At or below $33,900
* 4-person family-At or below $37,700
* 5-person family-At or below $40,700
* 6-person family-At or below $43,700
* 7-person family-At or below $46,700
* 8-person family-At or below $49,750

To apply for assistance, buyers may apply for the program through the Meramec Regional Planning Commission, 4 Industrial Drive in St. James or may contact Lesley Bennish at (573) 265-2993 or by email at lbennish@meramecregion.org.

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